8 tax deductions that may save you some cash in 2022
Spring is just around the horizon. Soon, the snow will melt from the landscape and flowers will pop up left and right. Tax season is also popping up, so it’s time to take out your paperwork and prepare for drudgery.
Here’s some good news, though. You don’t have to brace yourself for Uncle Sam snatching away your hard-earned money. Tax deductions can do you a world of good if you qualify for them, that is.
If you want to minimize the amount you owe the government, you’ve come to the right place. We collected eight tax deductions to help you save cash when you file. This is good to keep in mind when considering all the tax law changes in 2021.
1. Did you never get your stimulus payment? Try this
When the third stimulus payment rolled out, some people never received the total amount. Good news: You could be eligible for the Recovery Rebate Credit. When you file your 2021 tax return, make sure to keep this in mind.
2. Mother Earth thanks you, as does the government
If you’ve set your home up to be energy efficient, you could get a tax break this season. This covers everything from roofs, doors and windows all the way to heating and AC systems. If you’re using energy most efficiently, claim a residential energy credit this year.
3.Try this if you have children or dependents
Caring for others pays off. You can claim up to $8,000 for one dependent and $16,000 if you’re caring for two or more people. You’ll just need to have a good overview of your finances.
Take note of how much you spend on daycare, afterschool care and even how much you spend on gas driving your kids to and from care programs. Don’t forget to write down the costs of babysitters and nannies, too.
You’ll need those numbers to fill out Form 2441, which you can attach to your Form 1040 tax return. Just make sure you’re writing down the care providers’ Taxpayer Identification Numbers, as well as their name and address. (If you don’t know this information, use Form W-10 to get it.)